Electricity Charges Received By Malls, Airport Operators Etc. From Lessees Bundled With Renting, Forms Composite Supply: CBIC

The Central Board of Indirect Taxes and Customs (CBIC) has clarified that whenever electricity is being supplied bundled with renting of immovable property and/or maintenance of premises it forms a part of the composite supply and shall be taxed accordingly.The Board has issued the clarification in respect of the recommendations of the GST Council in its 52nd meeting held on October 7, 2023,...

GST Exemption On Pure Services And Composite Supplies By Way Of Horticulture/Horticulture Works Made To CPWD: CBIC

The Central Board of Indirect Taxes and Customs (CBIC) has clarified that supply of pure services and composite supplies by way of horticulture/horticulture works (where the value of goods constitutes not more than 25 per cent of the total value of supply) made to Central Public Works Department (CPWD) are eligible for exemption from GST.Public parks in government residential colonies,...

DMFT Set Up By The State Governments Are Governmental Authorities, Eligible For GST Exemptions: CBIC

The Central Board of Indirect Taxes and Customs (CBIC) has clarified that District Mineral Foundations Trusts (DMFTs) set up by the state governments are eligible for GST exemptions.DMFTs work for the interest and benefit of persons and areas affected by mining-related operations by regulating receipt and expenditure from the respective Mineral Development Funds created in the concerned...

5% GST Applicable On Job Work For Processing Of “Barley” Into “Malted Barley”: CBIC

The Central Board of Indirect Taxes and Customs (CBIC) has clarified that 5% GST is applicable on job work for processing of “barley” into “malted barley”.The Board has issued the clarification in respect of the recommendations of the GST Council in its 52nd meeting held on October 7, 2023, in New Delhi with reference to the GST levy.The issue raised was whether job work for...

Passenger Transportation And Renting Of Motor Vehicle With Operator Attracts Same GST Rate Or Compensation Cess As Supply Of Motor Vehicles By Way Of Sale: CBIC

The Central Board of Indirect Taxes and Customs (CBIC) has clarified that input services in the same line of business include transport of passengers (SAC 9964), renting of motor vehicles with operators (SAC 9966), and not leasing of motor vehicles without operators (SAC 9973), which attracts GST and/or compensation cess at the same rate as supply of motor vehicles by way of sale.The Board...

Penalty Is Payable On Failure To Deposit Tax Collected Within A Period Of Thirty Days From The Due Date: Kerala High Court

The Kerala High Court has held that the penalty is payable on failure to deposit the tax collected by him within a period of thirty days from the due date of the payment of the tax.The bench of Justice Dinesh Kumar Singh observed that in Sub-sections 6, 8, and 9 of Section 73 of the GST Act, 2017, it is provided that if a person chargeable to tax fails to deposit the tax collected by him within...

GST Appellate Tribunal Constituted But Not Functional: Gujarat High Court Stays Recovery Of Dues

The Gujarat High Court has stayed the order for recovery of dues on the grounds that, though the GST Appellate Tribunal was constituted, it was not functional.The bench of Justice Biren Vaishnav and Justice Mauna M. Bhatt has observed that though the Tribunal is constituted, it is still not functioning, and the competent authorities think it fit to issue orders of recovery, asking the...

System Default Is The Standard Excuse Of Department When It Comes To Giving Refunds: Bombay High Court

The Bombay High Court has stated that system default is the standard excuse of the department when it comes to giving refunds.The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that the excuse used is that the system under the control of the Centralized Processing Center (CPC), Bangalore, has some issues and, therefore, amounts are not being released to assessees....

Delhi High Court Allows Income Tax Deduction On Upfront Loan Processing Fee To Indus Towers

The Delhi High Court has allowed income tax deduction on the upfront loan processing fee to the assessee, Indus Towers.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that merely because the loan processing charges were paid upfront but amortized over a period of five years, solely to be in consonance with the mercantile system of accounting, the deduction of...

Transfer Pricing | Delhi High Court Excludes Comparables On The Basis Of Functional Dissimilarity

The Delhi High Court has excluded the comparables on the basis of functional dissimilarity in the transfer pricing case.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia excluded three comparables, namely Infobeans Technologies Ltd., Cybercom Datamatics Information Solutions Ltd., and Infosys BPO Ltd., citing clear reasons for their exclusion.The appellant/department assailed...

GST | Opportunity Of Hearing Must Before Taking Adverse View: Allahabad High Court Quashes Penalty Order

The Allahabad High Court has held that principles of natural justice must be complied with before drawing any adverse inference.While quashing the penalty order and subsequent order of the appellate authority, Justice Piyush Agrawal held, “Once the authorities intend to take an adverse view, the petitioner has to be informed and put to notice to rebut the same and therefore, the impugned...

UPVAT | Exemption/Concession Form Not Produced During Assessment Due To Unavoidable Circumstances, Can Be Considered By Tribunal: Allahabad HC

The Allahabad High Court has held that if a form through which exemption/concession has been claimed under the Uttar Pradesh Value Added Tax Act, 2008 could not be produced at the time of assessment due to unavoidable circumstances, the same can be produced before the Tribunal. The Tribunal is bound to consider it before passing any order.The bench comprising of Justice Piyush Agrawal...